What would happen if other nations banned their local currency and adopted US dollars?

Let's say that Europe, Middle-East, Asia, Oceania, and South America banned their local currency and adopted US dollars. What would happen to our currency and standard of living? How can we encourage other nations to stop using their currency and start using ours, IF it helps us?|||Why would they want the US dollar when we have no confidence in it as of right now?|||It shouldn't really make that much difference, America is pretty much leading all economies (only in some ways) If America goes up we all go up. If America goes down, we all go down. This has happened now, the small banls and large banks went into debt and it may cause a recession. This just means the US Dollar is probably good where it is. It is natural to have booms and recession in the economy. Your standard of living wouldn't fall. Atleast I don't think so. If anything you'll bring other peoples standards up. I wouldn't try to encourage people to use one currency (just my opinion)!!!|||In the short term, it would be a financial strain for them to do, which would end up haunting them for anouther decade to come.


In the long term, while the poorer nations will be alright, in regards to their money printing, the richer nations will have to bust out more money then before, which will drastically increase the inflation rate to unprecedented levels.


Overall, no-one wins. It just makes things a bit easier for tourists.|||to an extent some countries have already done this just not with the US dollar. The euro is used in all European nations except for the UK. It has worked well for them. I don't see this happening where all other countries accept our dollar as their currency. As a matter of fact it would probably cause the value to decrease.





Our dollar is backed by our gold, the more money we print the more we are stretching the worth of our gold. We only have a set amount of gold so when more money is put into the system each dollar has to decrease in value for the gold to cover it. We would have to print a massive amount of money to be distributed world wide. THis would in effect cause the money to be worthless because there would be so much more currency than gold.





It is actually better for us to have the rest of the world judge the value of their currency against ours.|||Well this wouldn't happen. Because this means every country would need to unionize into one super nation, and throw away their form of economy, and adopt ours. And it wouldn't help us out either because more dollars would need to printed, making the dollar less valuable. It would actually crush us because the value of the US Dollar is based on supply and demand of good and services that the US provides to the rest of the world. The reason why the value of the USD has dropped over the pas few years is because Europe and China have been lowering the prices of their goods and services. This decline of the USD will eventually come to a halt and its value will rise again because people in the EU and China will be looking to make more money, so they will raise the prices of their goods and services and eventually the USD will be back on top again... But the plan of unionizing every world economy would completely eliminate a value system and it destroy the standard of living in the US. For example, if the US, Canada, and Mexico became unionized into the North American Union and adopted any type of currency, the people in the US would be getting crushed because with the poverty and unemployment rates in Mexico and with how bad Mexico's economy is, Americans would only be getting an equivalency of around 6 cents to every dollar we own. We would be going from living very, very decent lives to almost starving. There are more poor countries in the world than rich countries. So just think how one poor country (Mexico) effects two rich countries (the US and Canada)... Now think about how more than half of 195 countries (there are 195 countries in the world) would effect the rest of the countries... It just wouldn't work.





I completely understand the question you're asking. You're thinking that if other countries us the US Dollar, then the US Dollar would be worth more. But, in reality, it just doesn't work out that way.





Now if there were a balanced amount of jobs along with a balanced amount of money, then it might work out on the smaller scale. That's how the Europe transitioned from several forms of currency to one. But it just doesn't work out on the global scale.


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End Fed Now (one of your posters) is completely right. Even though I just said everything that would make you not want to support it, we do actually have somewhat of a setup like that and it does help the US Dollar stay as strong as it does. What I was talking about was unionizing poor economies with rich economies; that doesn't work. But what End Fed Now said is completely correct.|||If everyone adopts the US currency that means US will get a free ride on the world economy, we will be able to import as much goods from other countries without having to export goods in return. This is essentially a form of slavery.





This is ACTUALLY very similiar to the current system, since the dollar is the world's reserve currency. This means that the world has to use to the dollar to facilitate international transactions, such as buying oil. Why do you think the US is so wealthy? It is not because we produce a lot of goods, but it is rather because we can print money and buy things.|||A global currency would be a great idea, but it would need to have the same basis as the Euro, not the US Dollar!





No currency that is controled by an organisation like the Federal reserve should ever form the basis of a global currency.





If you don't understand why I am saying this, please spend a couple of hours exploring "how money works" on youtube, then go to www.zeitgeistmovie.com and spend a couple more hours watching the two films on there.|||Think about it this way.





If you lived in a small community of people where each person produced goods and traded with each other. If you are the only person who has a printing press to issue money, then you would no longer have to work because everyone would accept your money.





Thats how it is for the US today.|||yeah, that's going to happen. We're a lot closer to adopting a different currency than anybody else is to adopting ours.|||You should read about the Argentinians experience with that. They converted their monetary system to dollars and it ruined their economy. Any country who does this falls pray to the monopoly of the currency producing country.|||Strength of the dollar would go up as the demand for the Dollar skyrocketed.





Would hurt American manufactures that sell goods overseas, but it would help Americans that bought goods overseas.|||Several countries have actually done this. Panama and El Salvador are examples, along with a handful of small Pacific Island countries.





It doesn't affect us much either way, really.|||Euromerica|||I'd shoot myself.